January 25, 2018

SI Financial to boost wages

HBJ PHOTO | John Stearns
HBJ PHOTO | John Stearns
SI Financial President/CEO Rheo Brouillard.

The parent of Windham's Savings Institute Bank & Trust, which has several bank branches in Greater Hartford, has added its name to the list of companies that will increase wages as a result of the recent federal tax cuts.

SI Financial Group said Wednesday that it would increase its minimum wage for approximately 25 percent of its workforce, and also increase its quarterly shareholder dividend by a penny, to 6 cents.

The company did not disclose details of what its minimum wage currently is and what it will be.

The federal Tax Cuts and Jobs Act, signed into law around Christmas, is expected to be a boon for many companies because it lowers the corporate tax rate from 35 percent to 21 percent.

The new law is also creating near-term liabilities for companies who are repatriating offshore money to the U.S., or who have deferred tax assets on their balance sheets.

SI said earlier this month that it falls under the latter category. The company's approximately $9.4 million in deferred tax assets would be reduced in value by $4 million, which would be recorded as an income tax expense in its fourth-quarter earnings, expected to be announced next week.

Other companies that have recently announced wage hikes or bonuses include Walmart, Webster Financial, The Hartford and Travelers.

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